In a significant move affecting many account holders, several major banks in the United Arab Emirates (UAE) are set to increase the minimum balance requirement for current accounts from AED 3,000 to AED 5,000, effective June 1, 2025. This adjustment aligns with updated guidelines from the UAE Central Bank concerning personal loans.
Under the new policy, customers who fail to maintain the AED 5,000 minimum balance will be subject to a monthly fee of AED 25. However, banks have outlined specific exemption criteria to help customers avoid these fees:
- Maintaining a total balance of AED 20,000 or more across accounts.
- Having a monthly salary transfer of AED 15,000 or more.
- For those with monthly salaries between AED 5,000 and AED 14,999, holding a credit card, overdraft facility, or personal loan with the same bank may exempt them from the fee.
This change is poised to have a considerable impact on low-income earners, freelancers, and small business owners who may find it challenging to meet the increased minimum balance. For many expatriates in the UAE, maintaining a bank account is essential for salary deposits and daily financial transactions. The heightened requirement could lead to additional financial strain for those already managing tight budgets.
Financial experts advise account holders to review their banking arrangements promptly. Exploring options such as linking other banking products like credit cards or personal loans, or consolidating accounts to meet the new minimum balance, may help mitigate potential fees. Additionally, some banks offer accounts with no minimum balance requirements, which could be a viable alternative for those affected.
As the June 1 implementation date approaches, customers are encouraged to consult with their respective banks to understand how these changes may affect their accounts and to explore possible solutions to avoid incurring additional charges.
